Funding Blockchain Ecosystems

I recently had a Twitter interaction with Jake Brukhman of Coinfund where we discussed the best method for blockchains to grow their ecosystems. Blockchains are launching ICOs and raising hundreds of millions of dollars, but what is the best use of their funds. I present an overview of different blockchains and how they are funding and developing their ecosystems. I then write my thoughts on what is the best method for increasing blockchain ecosystems.

Venture Fund

Grants

Other Funding

Ethereum

A variety of companies building on Ethereum created a $100MM Ventue Fund.
It's goal is to create a permanent financial endowment to support and
aid projects in building crucial open-source infrastructure, tooling, and applications.

Ethereum has so far offered $2.8MM in grants for startups and developers focused on
projects that are doing great work across scalability, usefulness and security.

Consensys, a venture production studio, is focused on
funding and supporting the Ethereum ecosystem.

Ripple

Ripple created a corporate arm called Xpring to invest in startups that
use XRP and the XRP ledger to solve their customer’s problems

X

X

EOS

Block.one, EOS's foundation, has committed $1B to invest
into funds focused on growing the EOS ecosystem. It's essentially a fund of fund.

X

X

Tezos

Tezos launched a $50MM venture fund to startup and
developers building on the Tezos's platform.

X

X

Stellar

X

Stellar awards grants of up to $2MM for exceptional organizations
who develop and operate products and services that are
crucially important to the Stellar Network.

X

Monero

X

Monero has a program where a proposal is proposed via its forum.
If approved, the community
will fund a grant to support the project. The money is
held in escrow until milestones are met.

X

Dash

X

X

Dash Masternodes fund the ecosystem via a system called Decentralized Governance by Blockchain.
Masternodes vote on proposals by the public and decide if they want to fund them.

 

As you can see many blockchains are electing to create venture funds. A venture fund is an obvious use of proceeds. If you have hundreds of millions of dollars, deploying money via a venture fund could have a lot of immediate benefits. One of the few things that EOS is doing right is outsourcing its corporate venture program. It's allocating the funds to people who have experience in early-stage technology investment and should know how to maximize the ROI both in $$$ and for the ecosystem itself. These blockchains should be focused on encouraging people to build on their platforms. Grants, venture funds and innovative methods like master nodes are a great way to support people developing on your platform.